Maiden JORC Resource at Molaoi

RNS Number : 3995M

Rockfire Resources PLC

23 May 2022

 

The information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.

23 May 2022

Rockfire Resources plc

("Rockfire" or the "Company")

Maiden JORC Resource at Molaoi exceeds expectations

Rockfire Resources plc (LON: ROCK), the gold and base metal exploration company, is pleased to announce a maiden Mineral Resource estimate ("Mineral Resource") at its 100%-owned Molaoi zinc deposit in Greece. The Mineral Resource has surpassed all expectations and demonstrates the quality and potential of the project.

The resource is reported in accordance with the Joint Ore Reserve Committee ("JORC") Australasian Code (2012) for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Highlights

· The inaugural JORC resource estimation for Molaoi has delivered an Inferred Mineral Resource of:

2.3 million tonnes @ 11 % ZnEq. for 250,000 tonnes of ZnEq.

· This resource uses a 4% low-grade cut, with individual elemental grades of 9.4 % Zn, 1.7 % Pb and 47 g/t Ag.

· Molaoi currently contains 210,000 tonnes of zinc, 39,000 tonnes of lead, and 3.5 million ounces of silver.

· Only 1,400 m of a potential strike extent of 7 km has been included in the resource and the resource remains open at depth and along strike.

· Multiple, parallel mineralised lodes, which are not included in the resource, are yet to be fully tested. The images of the resource model, which can be viewed via the link below, demonstrate the quality of zinc intercepts in parallel lodes which may add materially to the resource in future estimates.

· Metallurgical flotation test work completed in 1984 resulted in 96% zinc recovery, 92% lead recovery and 91% silver recovery into a bulk concentrate. These recovery factors have been applied to the Mineral Resource to calculate the resulting zinc equivalent tonnes and grade.

· Mineralisation starts at surface. Despite this, and to ensure a practical estimate is delivered, the top 40 m has been excluded from the Mineral Resource. Rockfire is planning underground mining only to minimise social and environmental impacts.

· As mentioned in the Company's RNS on 10 May 2022, one of the world's critical metals, germanium, is present at potentially commercial grades. Germanium has not been included in the resource estimate owing to limited quantitative analysis.

· Molaoi has a capped portal and 700 m long decline which, if refurbished, may permit access to the top of the sulphide mineralisation. Molaoi lies within 10 km of the coast, providing excellent access to potential markets.

· Rockfire plans to undertake resource delineation and extensional drilling over the next 12 months.

A plan, cross section and long section of the resource model can be viewed by following the link provided here. http://www.rns-pdf.londonstockexchange.com/rns/3995M_1-2022-5-23.pdf

David Price, Chief Executive Officer of Rockfire, commented:

"Our maiden JORC Mineral Resource for Molaoi represents a pivotal milestone for Rockfire. Management considers Molaoi to be an outstanding base metal project, which we hope will grow to a globally significant scale. The quality of the grades and quantity over the first 1,400 m strike extent is testimony to the potential size of Molaoi, particularly if our planned exploration along strike proves to be successful.

"We intend to test the entire 7 km of strike which, if similarly mineralised, could potentially result in a resource much larger than the maiden resource. Several historical holes drilled along this 5.5 km extension have intersected high grade zinc, so we know already that zinc is present.

"The project is at an advanced stage, with 173 cored holes having already been drilled. Resource delineation and extension drilling can commence quickly, with most preliminary surface exploration techniques having already been completed by the Greek government. We are working on obtaining the necessary permits to commence our drilling at Molaoi as quickly as possible.

"Rockfire now has a significant inventory of 100%-owned JORC Mineral Resources comprising:

ü Molaoi, Greece - 210,000 tonnes of zinc, 39,000 tonnes of lead and 3.5 million ounces of silver

ü Copperhead, Australia - 80,000 tonnes of copper, 9,400 tonnes of molybdenum and 1.1 million ounces of silver

ü Plateau, Australia - 130,000 ounces of gold and 800,000 ounces of silver

"The Company will inform the market as we continue to build our resource inventory."

Qualified Person Statement:

The technical information in this announcement is based on information compiled by Mr Edward Fry, the Exploration Manager of Rockfire Resources plc, who is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM). Mr Fry has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which has been undertaken to qualify as a "Qualified Person" in accordance with the AIM Rules Guidance Note for Mining and Oil & Gas Companies. Mr Fry consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.

For further information on the Company, please visit  www.rockfireresources.com  or contact the following: 

Rockfire Resources plc:	[e-mail]
David Price, Chief Executive Officer
Allenby Capital Limited (Nominated Adviser & Broker)	Tel: [phone]
John Depasquale / George Payne (Corporate Finance) Matt Butlin / Kelly Gardner (Sales and Corporate Broking)
Yellow Jersey PR	[e-mail]
Sarah Hollins / Henry Wilkinson	Tel: [phone]

Mineral Resource Details and Parameters

The results of the maiden Molaoi Mineral Resource estimate are detailed in the Statement of Mineral Resources in Table 1. The Statement of Mineral Resources is reported in accordance with the requirements of the 2012 JORC code and is therefore suitable for public reporting.

The Mineral Resource is reported above a cut-off grade of 4 % Zn

Rockfire Resources plc

Molaoi Mineral Resource Estimate as of 20th May 2022 (4% Zn cut-off)

Resource Category

M t

Grades

Metal content

Zn EQ %*

Zn %

Pb %

Ag g/t

Zn EQ t

Zn t

Pb t

Ag M oz

Inferred

2.3

11

9.4

1.7

47

250,000

210,000

39,000

3.5

* Zn EQ = (0.958 x Zn%) + (0.511 x Pb %) + (0.176 x Ag g/t)

This equation has factored in the historical 1984 metallurgical recoveries into a concentrate of 95.8% Zn, 91.8 % Pb, and 91 % Ag

Assumed commodity prices (20th May 2022) are Zn $3647 USD/t, Pb $2032 USD/t, and Ag $21.89 USD/oz

It is the company's opinion that all elements listed above have a reasonable potential for recovery and sale

The Mineral Resource has been compiled by Edward Fry who is a full-time employee and shareholder of Rockfire Resources and is a Member of the AusIMM. Mr. Fry has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he has undertaken to qualify as a Competent Person as defined in the JORC Code.

All Mineral Resources figures reported in the table above represent estimates at May 2022. Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape and continuity of the occurrence and on the available sampling results. The totals contained in the above table have been rounded to two significant figures to reflect the relative uncertainty of the estimate. Rounding may cause some computational discrepancies. Mineral Resources do not demonstrate economic viability.

The Mineral Resource has been estimated in accordance with the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' prepared by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Geoscientists and Minerals Council of Australia (The JORC Code 2012).

A detailed discussion of the Mineral Resource estimation methodology and parameters is detailed below:

· The Mineral Resource has been calculated using historical drill hole information. The drilling occurred between 1979 and 1988, over numerous campaigns by the Greek Government, with a total of 173 cored drill holes. The original drill hole assays have been validated by Rockfire through the re-analysis of precise sampling intervals of the original drill core.

· Ordinary Kriging ("OK") was used to estimate the block grades using Micromine software. The OK estimation utilised modelled variograms based on flattened and realigned mineralisation sample and block positions.

· Parent block size is 2.5 m by 2.5 m by 2.5 m.

· Linear grade estimation was deemed appropriate due to the geological/mineralisation continuity and a low Coefficient of Variation of 0.89.

· The Mineral Resource estimate has been constrained by the wireframed mineralisation, which is a hard boundary and does not incorporate external waste.

· The Molaoi Mineral Resource area extends over a north-south strike length of approximately 1400 m (from 4,076,845 mN to 4,078,257 m N), has a maximum plan width of approximately 280 m (from 665,080 mE to 665,358 mE) and includes a 330 m vertical window between 185 m RL to -145 m RL.

· The Mineral Resource estimate is reported above a Zn cut-off grade of 4%.

· The mineral Resource is classified as 100% inferred. This is based on data quality, sample spacing, and mineralisation continuity.

Notes to Editors

Rockfire Resources plc (LON: ROCK) is a mineral exploration company with a portfolio of 100%-owned gold and copper projects in Queensland Australia and a high-grade zinc deposit in Greece.

§ The Plateau deposit in Queensland has a JORC resource of 130,000 ounces of gold and 800,000 ounces of silver.

§ The Copperhead deposit in Queensland has a JORC resource of 80,000 tonnes of copper, 9,400 tonnes of molybdenum and 1.1 million ounces of silver.

§ The Molaoi deposit in Greece has a JORC resource of 210,000 tonnes of zinc, 39,000 tonnes of lead and 3.5 million ounces of silver.

1.  JORC Code, 2012 Edition - Table 1

1.1. Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	· Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. · Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. · Aspects of the determination of mineralisation that are Material to the Public Report. · In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	· The historical drill sampling was exclusively sourced from diamond drilled holes. The drill core sampling is assumed to be of an adequate quality. · The historical drill core was half sampled. · The mineralized zone is characterized by massive to semi-massive sulphides (sphalerite, galena, pyrite). This zone is surrounded by a disseminated sulphide zone. Both of these zones are easily visible and discernible from unmineralized host rock within the historical drill core, making the determination of mineralized material fairly straight forward. · The historical diamond drill core sampling was based on geological intervals, with a minimum sample length of 0.1 m and a max of 2.0 m. · The historical diamond drill core was cut in half, with half core sent off to analysis and the remaining half stored in appropriately marked core trays at a secure Greek government facility.
Drilling techniques	· Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	· The historical drilling is composed entirely of unoriented diamond drilled core of PQ and NQ size.
Drill sample recovery	· Method of recording and assessing core and chip sample recoveries and results assessed. · Measures taken to maximise sample recovery and ensure representative nature of the samples. · Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	· The historical diamond drill core recovery is recorded in a digital database. · The method of core preparation, core measurement, or sample maximization techniques were not recorded or have not been delivered by the Greek Government to Rockfire Resources plc. · No correlation exists between sample recovery and sample grade.
Logging	· Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. · Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. · The total length and percentage of the relevant intersections logged.	· Historical geological logs for a portion of the drill holes have been found and translated from Greek. They are of sufficient detail to support a Mineral Resource estimation. · The core logging is considered qualitative in nature. · Only a portion of the logs have been provided to Rockfire from the Greek Government. These logs represent ~30 % of the relevant drill holes, being 2760.9 m of the 9447.2 drill meters. The geological logs demonstrate good relationship between the sulphide rich zones and the historical drill assays.
Sub-sampling techniques and sample preparation	· If core, whether cut or sawn and whether quarter, half or all core taken. · If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. · For all sample types, the nature, quality and appropriateness of the sample preparation technique. · Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. · Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. · Whether sample sizes are appropriate to the grain size of the material being sampled.	· The core was cut and ½ core was sent for analysis. The core in places have been further samples with the remaining material stored in well labelled plastic bags within the core trays.  · No information exists regarding the nature, quality, or appropriateness of the historical sampling method beyond what can be inferred from the remaining core which has been located by Rockfire Resources. · No information exists regarding the quality control procedures. · No information exists regarding the quality assurance procedures · The sample sizes are appropriate given the massive/semi-massive/disseminated sulphide nature of the mineralization.
Quality of assay data and laboratory tests	· The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. · For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. · Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	· The assaying was completed by an Italian government laboratory (ITMI) based in Rome, no comment can be made regarding the appropriateness of the assaying method beyond what can be inferred from the resampling program which found a good correlation between the historical and resampled Zn assays. The resampling demonstrated a precision of approx. 10%. As such the historical data is considered as being appropriate for use in this Mineral Resource Estimate. · No records exist regarding the assay method used or the quality assurance/quality control procedures enacted.
Verification of sampling and assaying	· The verification of significant intersections by either independent or alternative company personnel. · The use of twinned holes. · Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. · Discuss any adjustment to assay data.	· The historic drill results have been verified by Rockfire personnel. The historical drill core was located at a government facility in Athens and select intervals were resampled and sent to ALS for verification analysis. · No twinned holes have been drilled by Rockfire at this stage. · The original hard copy databases were scanned and presented to Rockfire resources. These databases were then digitized and validated by Rockfire personnel. All drill data is stored in a Micromine based system. Manual backups are completed to both separate hard-drive and cloud based services. · No adjustment to assay data was completed.
Location of data points	· Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. · Specification of the grid system used. · Quality and adequacy of topographic control.	· The accuracy of the drill hole database is unable to be determined at this point. The data has been translated from local grid system into UTM WGS84. The drill data has been matched with difference sources of data to provide the best location fit. This fit corresponds well with the surveyed underground development completed by the Greek Government. · UTM WGS 84 · The topographic control has been extracted from Google Earth. This is considered adequate for the Mineral Resource Estimate classification applied.
Data spacing and distribution	· Data spacing for reporting of Exploration Results. · Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. · Whether sample compositing has been applied.	· Drill hole spacing was typically completed on a 50m along strike and 50 m down dip basis. · The drill hole spacing is sufficient to establish the geological and grade continuity for the Mineral Resource Estimate classification. · Samples were composited to 1 m lengths prior to estimation.
Orientation of data in relation to geological structure	· Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. · If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	· Drill orientations were designed to intersect any geological contacts or mineralized zones at a high angle. Typical drilling is vertical or inclined to the west. The historical drilling was completed by the Greek Government, which reduces the inclination to cluster drilling around high grade areas. As such, the drilling is well spaced and the sampling is considered as being unbiased.
Sample security	· The measures taken to ensure sample security.	· No information exists regarding the nature, quality, or appropriateness of the historical sample security.
Audits or reviews	· The results of any audits or reviews of sampling techniques and data.	· No information exists regarding the nature, quality, or appropriateness of the historical sampling reviews.

1.2.

1.3. Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	· Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. · The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	· The Mineral Resource Estimation is for the Molaoi Deposit located in the Laconia Municipality in Greece. Molaoi is covered by the exploration and mining lease 'M1 (Molaoi Apidia). · Rockfire Resources plc owns 100 % of the Project through its subsidiary Hellenic Minerals IKE.
Exploration done by other parties	· Acknowledgment and appraisal of exploration by other parties.	· The historical exploration work was completed by the Greek Government geological department "IGME", towards the end of the exploration phase a joint venture with a company called "METBA" was established. IGME completed the generative exploration work (e.g., stream sediment sampling, soil sampling, drilling, metallurgy, underground drive development, resource estimations). METBA completed high level technical studies and feasibility studies.
Geology	· Deposit type, geological setting and style of mineralisation.	· The Molaoi deposit was initially considered as being a zinc dominant 'Kuroko style" Volcanogenic Massive sulphide (VMS) system. Debate as to the validity of the VMS model is ongoing. There is a significant body of evidence which suggests that these Zinc VMS deposits are actually structurally controlled hydrothermal systems (possibly intrusion related). The geological and structural studies indicate a complex setting of andesite lavas and tuffs along with clay-carbonate sediments and numerous fault breccias which have undergone at least three folding events. At least one folding event is noted as being isoclinal. Given the structural complexity and the relatively good level of continuation (+1400 m long) of the zinc mineralized zones it is unlikely that the mineralization is primary in nature, as suggested by the VMS model. As such, the hydrothermally derived model (possibly intrusion related) is adopted. The mineralized zones are typically hosted in fault breccias and are represented by massive/semi-massive sulphides surrounded by zones of disseminated sulphides. The sulphides consist of sphalerite, galena, and pyrite. The primary elements of interest are Zn, Pb, Ag, and Ge. Low levels of cadmium have been recorded within the deposit, it is unclear as whether or not Cd is a credit or a detriment to the mineralization at this stage.
Drill hole Information	· A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. · If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	· Exploration results are not being reported. · All appropriate information has been included within the appendices. No drill hole information has been excluded. · There are a small number of historical drill holes that do not contain any assay data. Additionally, there are historical drill holes which have been displayed in late-stage cross section which have not been detailed in the database provided by the Greek Government to Rockfire Resources plc. Some of the drill holes that do not contain assay data are proximal to drill holes that do contain assay data. As such these holes have been ignored for the Mineral Resource Estimation.
Data aggregation methods	· In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. · Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. · The assumptions used for any reporting of metal equivalent values should be clearly stated.	· Exploration results are not being reported. · N/A, as a Mineral Resource Estimate is being reported. · The individual grades are estimated, from this a zinc equivalent has been calculated. The assumptions used are; Ø Zinc price $ 3647 USD/t, Lead price $2032 USD/t, Silver price 21.89 USD/oz (dated 16th May 2022 Ø Historical flotation metallurgical test work show significant recoveries into a concentrate. The recoveries into the concentrate are 95.8 % for Zn, 91.8 % for Pb, and 91 % for Ag. Ø It is the company's opinion that all the elements included in the metal equivalent have a reasonable potential to be recovered and sold.
Relationship between mineralisation widths and intercept lengths	· These relationships are particularly important in the reporting of Exploration Results. · If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. · If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').	· The drill lines and drill hole orientations have been orientated to intercept the mineralization as close to 90 degrees as possible. · The drill holes have been orientated either vertical or due west. The deposit strikes due north and generally dips 40-60 degrees to the east.
Diagrams	· Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	· Relevant diagrams have been included within the Mineral Resource Estimate report main body.
Balanced reporting	· Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	· N/A as a Mineral Resource Estimate is being reported.
Other substantive exploration data	· Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	· Results were estimated from drill hole assay data, with geological logging used to guide the interpretation. · Historical metallurgical test work has been completed at the Molaoi deposit, further details are located in Section 3. · Bulk Density calculates have been completed by Rockfire Resources plc, further explanation is detailed in Section 3.
Further work	· The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). · Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	· Follow up diamond drilling planned, which will be designed to twin historical holes and to extend/infill the resource area. · Additional metallurgical test work may be undertaken on the fresh drill samples. · Additional bulk density calculations of the mineralized zone and the waste rock will be completed.

1.4. Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria	JORC Code explanation	Commentary
Database integrity	· Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes. · Data validation procedures used.	· No information exists regarding the nature, quality, or appropriateness of the historical data validation. · Rockfire performed initial drill audits in Micromine. Rockfire checked collar coordinates, hole depths, hole orientation, assay data overlaps and duplicate data. Errors were found in the collar file which were documented and amended. · There are a small number of historical drill holes that do not contain any assay data. Additionally, there are historical drill holes which have been displayed in late stage cross section which have not been detailed in the database provided by the Greek Government to Rockfire Resources plc. Some of the drill holes that do not contain assay data are proximal to drill holes that do contain assay data. As such these holes have been ignored for the Mineral Resource Estimation. · There are assay values in the digital database which are represented by a -1 value. Some of these assay results were resampled and analysed by Rockfire at ALS. The -1 values were found to contain above detection results (e.g., -1 original assay result for Cd returning 988 ppm Cd during the resampling). This implies that the -1 values represent unassayed values as opposed to below detection assays.
Site visits	· Comment on any site visits undertaken by the Competent Person and the outcome of those visits. · If no site visits have been undertaken indicate why this is the case.	· No site visit was completed by the Competent Person as he fell ill with COVID 19 and was unable to leave Australia for the organised site visit. Other Rockfire personnel have visited sit and have noted the presence of historical small scale mining pits, gossanous material at surface, and have located the cement sealed exploration decline.
Geological interpretation	· Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit. · Nature of the data used and of any assumptions made. · The effect, if any, of alternative interpretations on Mineral Resource estimation. · The use of geology in guiding and controlling Mineral Resource estimation. · The factors affecting continuity both of grade and geology.	· There is a relatively high degree of geological uncertainty with the geological model at this stage. This is because there have only been approx. 30% of the logs provided by the Greek Government to Rockfire Resources. Regardless of this, the geological logging has clearly shown that mineralized zones are located within sulphide rich fault zones. At the main section of the deposit, the mineralization exists as three parallel zones. The main zone has been modelled in this Mineral Resource and correlates well with the current geology and the historical 1985 modelling of the mineralisation. This provides a proxy validation of the geological interpretation and mineralization model. · The geological logs and drill hole assays have been used to model the mineralisation. The assumptions made are that both the assay values and geological logs are reliable and sufficient. · The effect of alternative interpretations will modify the Mineral Resource significantly. As only one of the three repetitions has been modelled in this Resource Estimation, if a model were to cherry pick the high-grade mineralisation zones from each layer into a single layer, then this would significantly increase the grade and size of the single layer of mineralization. To avoid this issue, the spatial continuation of each layer has been preserved, i.e., the model has avoided abrupt of significant changes in orientation which would favour a higher-grade higher-tonnage interpretation. · Where the geological logs were noted, they were used to model the mineralization. From these points, the mineralisation model was extended section by section to identify the most likely points continuation of the mineralization. · The largest factors impacting mineralisation continuation are structural in nature. The modelling has identified numerous faults, these faults were noted or mapped at surface and have been used to explain grade domains (abrupt changes in the orientation of planar mineralisation). Additionally, interference folding has been identified within the mineralization model.
Dimensions	· The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.	· The Molaoi Mineral Resource area extends over a north south strike length of ~1400 m (from 4,076,845 mN to 4,078,257 m N) has a maximum plan width of ~280 m (from 665,080 mE to 665,358 mE) and includes the ~330 m vertical window from (185 m RL to -145 m RL)
Estimation and modelling techniques	· The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used. · The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. · The assumptions made regarding recovery of by-products. · Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation). · In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. · Any assumptions behind modelling of selective mining units. · Any assumptions about correlation between variables. · Description of how the geological interpretation was used to control the resource estimates. · Discussion of basis for using or not using grade cutting or capping. · The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.	· Ordinary Kriging (OK) was used as the estimation method. The OK estimation utilized variograms for Zn, Pb, and Ag. Given the narrow vein nature of the deposit an arbitrary 2 m was allocated to the variogram Axis 3 for each element. The estimation was run using Micromine software in three passes. Linear grade estimation was deemed appropriate due to the low coefficient of variation for the Zinc (CoV 0.89). Maximum extrapolation of wireframes was 50 m beyond the last drill intersect along strike and down dip. This is approximately equal to the drill hole spacing. Extreme grade values were truncated. The truncation points were based on reviewing the statistical distribution (histogram, probability plot, cumulative frequency curve) of the modelled grade values to find the most logical top cut value. Comparisons between a zone-by-zone estimation and an all-in flattened model were made. Given that the mineralisation is most likely a single mineralised fault zone that has subsequently undergone multiple phases of folding and faulting, the flattened model estimation technique was applied. This then allowed the incorporation of all the relevant data points for the Resource Estimation as opposed to being limited to the data points within the zoned area. The resulting model visually looks more appropriate and is considered as being a more accurate estimation. Evaluation of the two OK models revealed no significant difference in the global Mineral Resource Estimate. As such, the flattened estimation model was utilized. · A historical Non-JORC Mineral Resource Estimate was completed by The Greek Government. · No assumption regarding deleterious elements have been made. · A single concentrate containing zinc, lead, and silver is considered at this stage. Additional work is required to quantify the levels of cadmium and germanium within the concentrate. · The parent block size is 2.5 m N/S/Z this is in relation to a 50 m drill spacing. The blocks have not been rotated due to the requirement of flattening the zones for grade interpretation. This is also the reason for the relatively small parent block size. · No assumption regarding the SMU have been made. It is worth noting that a review of peer zinc SMUs indicate that a 2.5 m N/S/Z size is sufficient. · Zinc and lead have a moderate correlation, zinc and silver have a strong correlation, and silver and lead have a strong correlation. · The deposit mineralization was constrained by wireframe solids constructed using a nominal 2% Zn+Pb+Ag cut-off grade with a minimum downhole length of 1 m. The wireframes were applied as hard boundaries. · Statistical analyses were carried out on data from the four modelled zones. Top cuts were determined by reviewing the statistical distribution (histogram, probability plot, cumulative frequency curve) of the modelled grade values. Zinc grades within the model were cut to 36.26 % (3 data points removed, 1.6 %), lead values were cut to 7.19 % (1 data point 0.53 %), and silver values were cut to 136.08 g/t (6 data points, 3.2 %). · Validation of the model was completed by comparing the model to an IDW model and the grade tonnage average of the wireframe sets.
Moisture	· Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.	· Tonnages and grades were estimated on a dry in-situ basis.
Cut-off parameters	· The basis of the adopted cut-off grade(s) or quality parameters applied.	· The Mineral Resource Estimate has been constrained by the wireframed mineralization envelope and is undiluted by external waste. The Estimate is reported using a cut-off grade of 4 % Zinc. This was based on a review of peer Zinc deposit Mineral Resource Estimates.
Mining factors or assumptions	· Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.	· Underground mining with concentration via flotation and transporting the concentrate for out of country processing is envisioned by the company. As no dilution is incorporated into the model a relatively high cut-off grade of 6% was used to buffer the effects of possible dilution. To discuss possible mining methods at this stage is premature. Many factors need to be considered when proposing mining methods, these factors include but are not limited to the following: - Ø Mineralisation continuity, Ø Level of mineralisation orientation change, Ø Mineralisation dip (dip angle > than angle of repose), Ø Mineralisation competency, Ø Mineralisation thickness, Ø Wall rock competency, Ø Mechanisation type, & Ø Environmental and social limitations. The mineralisation displays good continuity with a large level of orientation change (anastomosing, faulted, and folded). This requires a mining method that can adjust swiftly to changes in orientation. The mineralisation dip is between 45 and 70 degrees. The Wall rock competency and the angle of repose is unknown and could provide problems with stoping mining methods. The Cut and Fill mining method may be possible depending on favourable results in the above mentioned unknow parameters.
Metallurgical factors or assumptions	· The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.	· Historical metallurgical test work has indicated significant recoveries of the sulphides into a concentrate. The recovery values are 95.8 % for Zn, 91.8 % for Pb, and 91 % for Ag. Historical metallurgical test work of the oxide/transition material shows varying and inconclusive results. As such only the fresh sulphide ore has been incorporated within the Mineral Resource Estimate.
Environmen-tal factors or assumptions	· Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.	· To discuss detailed environmental factors or assumptions at this stage is premature. An entirely underground operation where it is possible to place waste rock as back fill into the stope is conceivable. The ore can be concentrated using the flotation method and could be process out of country at existing facilities. No open pit mining is proposed and this is reflects by the top 40m (from surface) being excluded from the Mineral Resource Estimate.
Bulk density	· Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. · The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit. · Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.	· Bulk Density measurements where completed on the resampled drill core by ALS laboratories by using the water immersion technique. When evaluated, the data indicated a relationship between the sample weight and Bulk Density result up to ~700 g. As such all data under 700 g was discounted. The interval weighted average of the Bulk Density calculations for the samples greater than 700 g is 2.95. · The data above 700 g was then plotted against the zinc values, this highlighted several anomalous samples which were removed from the input data. Post cleaning, the correlation coefficient was very strong (0.92) with an R2 (shared variance) of 0.842 (84.2%). As density is predicted to be dynamic throughout the deposit, the equation Y = 0.284x + 2.5481 was used to populate the block Bulk Density data, as opposed to a single 2.95 SG value for the entire fresh rock deposit.
Classification	· The basis for the classification of the Mineral Resources into varying confidence categories. · Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data). · Whether the result appropriately reflects the Competent Person's view of the deposit.	· The Mineral Resource Estimate reported here is in compliance with the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves' by the Joint Ore Reserves Committee (JORC). The Mineral Resource is classified as 100% Inferred based on the missing data, uncertain quality controls of the data, the sample spacing, and mineralization continuity. · The input data is comprehensive in its coverage of the mineralization and does not favour or misrepresent the in-situ mineralization. A moderate level of geological confidence exists. Acquiring the missing geological logs is an important recommendation. · The Mineral Resource Estimate appropriately reflects the view of the Competent Person.
Audits or reviews	· The results of any audits or reviews of Mineral Resource estimates.	· Internal review of the Mineral Resource Estimate has been completed by Rockfire Resources plc. This review consisted of running through each step of the Resource Estimation process with the Rockfire CEO and visually inspecting the final product.
Discussion of relative accuracy/ confidence	· Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate. · The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. · These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.	· The mineralization geometry and continuity has been adequately interpreted to reflect the applied classification of inferred Mineral Resource. The data quality is sufficient to support the interpretation. The use of an Italian government laboratory (ITMI) for the historical results have been validated by the resampling completed by Rockfire Resources who utilized Australian Laboratory Services (ALS). ALS generated reasonably similar Zn results with a precision of ~10%. Finding the missing historical drill hole logs is a priority for Rockfire and will help improve the confidence in the Mineral Resource Estimate. · The Mineral Resource statement relates to the global estimate of tonnes and grade for the fresh rock component only. · No production data exists for the project.

 

 

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